LG&E and KU plan to build two natural gas units by 2031 to meet Kentucky’s economic growth.

LOUISVILLE, Ky. — LG&E and KU have reached a stipulation agreement with several parties in their ongoing case before the Kentucky Public Service Commission.

The agreement, filed Tuesday, supports the power company’s plan to expand generation capabilities to meet the state’s rapid economic growth.

Prompted by unprecedented economic growth across Kentucky, LG&E and KU are seeking a Certificate of Public Convenience and Necessity to build two 645-megawatt natural gas combined-cycle units, install new environmental controls at Ghent Generating Station and adjust plans for battery storage.

Highlights of the agreement include:

Construction of two advanced natural gas units at Brown 12 (operational in 2030) and Mill Creek 6 (operational in 2031).Installation of a selective catalytic reduction system at Ghent Unit 2 by 2028 to cut nitrogen oxide emissions.Extension of Mill Creek Unit 2’s operation beyond its planned 2027 retirement, pending environmental permitting until Mill Creek 6 is operational in 2031.Withdrawal of a previous request for battery storage at Cane Run, though future proposals remain possible.

“This agreement reflects our responsibility to serve Kentucky’s growing energy needs in the most reliable and cost-effective way,” said John R. Crockett III, president of LG&E and KU. “We value the transparent, collaborative regulatory process that helps ensure long-term solutions for all customers.”

The settlement was reached with the Attorney General Russell Coleman, Kentucky Industrial Utility Customers, Inc., Southern Renewable Energy Association, and the Kentucky Coal Association, Inc. 

Parties not joining the agreement may continue participating in the proceedings.

KPSC is expected to rule on the CPCN request and stipulation agreement by November.

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